The level of high loan-to-value (LTV) mortgage lending has hit an 11-year peak.
Data from the Bank of England shows that the share of mortgages advanced in the second quarter of 2019 with LTVs exceeding 75% was 39.7%, the highest since 2008.
The share of mortgages with LTVs exceeding 90% was 5.5%. This is the highest since the fourth quarter of 2008.
Meanwhile, the proportion of total mortgage balances in arrears has fallen to its lowest level in 12 years, falling from 0.99% to 0.97% which is the lowest since the series began in 2007.
Commenting on the data, Mark Pilling, managing director at Spicerhaart Corporate Sales, said: “It is obviously great news that arrears are low and still falling, but that does not necessarily mean that people are not experiencing financial difficulties.
“Instead, what I think we can take from these figures is that lenders are continuing to do all they can to help borrowers who are struggling, to ensure that repossession is always the last option.
“Another more worrying trend that we can see from these stats is that the number of mortgages with higher LTVs is continuing to increase.
“This suggests that some borrowers may be stretching themselves too thin, and if rates do rise, they may start to struggle with their repayments.”